Economic data shows no signs of recession in Europe
2023.01.04 09:52
Economic data shows no signs of recession in Europe
Budrigannews.com – A survey suggested that the Eurozone’s recession may not be as deep as anticipated at the end of last year, suggesting that price pressures eased and business activity contracted less than anticipated.
Global S&P (NYSE:) As a good indicator of economic health,’s final composite Purchasing Managers’ Index (PMI) for the euro area increased to 49.3 in December from 47.8 in November, exceeding a preliminary estimate of 48.8.
December saw a five-month high for the index, which has been below the 50 threshold that separates growth from contraction since July. Due to the holiday season, the final data were compiled earlier than usual last month.
Joe Hayes, a senior economist at S&P Global Market Intelligence, stated, “The euro zone economy continued to deteriorate in December, but the strength of the downturn moderated for a second consecutive month, tentatively pointing to a contraction in the economy that may be milder than was initially anticipated.”
“However, there is little evidence across the results of the survey to suggest that the economy of the euro zone may return to meaningful and stable growth in the near future,” the survey stated.
A poll conducted by Reuters in December predicted that the region’s economy would shrink by 0.4% this quarter and by 0.3% in the previous quarter.
Overall demand fell for the sixth month in a row, albeit more slowly than initially anticipated. From 45.8, the PMI new business index rose to 47.0, well above the flash estimate of 46.5.
When compared to November’s reading of 48.5, a PMI that measures the dominant services sector of the bloc registered 49.8, it came within a hair of the breakeven point. 49.1 was the initial estimate.
The sector’s price pressures decreased last month, but they remained high. From 62.3, the output prices index decreased to 61.0, its lowest level since August.
The European Central Bank’s policymakers, who have been tightening monetary policy to try to keep inflation from rising significantly above their target, will likely welcome this.
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